Borouge Achieves Milestone By Transporting Over 700,000 Tonnes Of Products With Etihad Rail In First Year

Borouge Plc has reported that over 700,000 tonnes of polyolefins have been transported in its first year of collaboration with Etihad Rail. This partnership utilises the UAE National Rail Network. Since September 2023, more than 36,000 containers have moved from Al Ruwais Industrial City to Khalifa Port in Abu Dhabi. This service is operated by Etihad Rail Freight, a subsidiary of Etihad Rail.

The rail route offers significant time savings, taking only four hours each way compared to 12 hours by other transport modes. This efficiency allows Borouge to cut costs and lower carbon emissions. The service was established through an agreement signed at the end of 2022 between Borouge and Etihad Rail. It provides scalability and is less affected by weather conditions like fog compared to road transport.

Hazeem Sultan Al Suwaidi, CEO of Borouge, stated, "Using the rail network to transport our products from the Al Ruwais Industrial City terminal has unlocked new opportunities for us, strengthening our focus on exporting our ‘Made in UAE’ solutions to meet growing customer demand, and enhanced the local supply chains." This partnership allows Borouge to move larger volumes per trip at higher speeds via rail, increasing their competitive advantage.

The collaboration supports the national In-Country Value programme. It ensures that 88% of the value returns to the local economy, promoting economic diversification and growth. The agreement builds on a long-term partnership between Etihad Rail and Abu Dhabi National Company (ADNOC), which was the first company to use Etihad Rail’s services for transporting granulated sulphur across the UAE for export.

Shadi Malak, CEO of Etihad Rail, remarked, "We create solutions for our customers so they can deliver for theirs, enabling them to increase their competitiveness in the market as a result." He emphasised their commitment to developing services under the guidance of H.H. Sheikh Theyab bin Mohamed bin Zayed Al Nahyan. Customers like Borouge benefit from reliable and cost-effective rail transport.

The new rail freight terminal in Al Ruwais Industrial City covers over one million square metres. It handles all container activities such as loading, unloading, storage and maintenance. This complements Borouge’s global operations effectively. The partnership with Etihad Rail is now expanding to include transportation to other UAE ports like Fujairah Port.

Commitment to Sustainability

Borouge serves customers in more than 80 countries across Asia, the Middle East and Africa. They offer innovative polyolefin solutions for industries including infrastructure, energy and healthcare. The partnership aligns with Etihad Rail Freight’s goal of providing logistics solutions for major companies in the UAE.

The UAE National Rail Network aims to reduce CO2 emissions in road transport by 21% annually by 2050. This initiative supports economical and sustainable goods transportation through rail networks as part of the UAE Net Zero by 2050 Strategic Initiative.

With inputs from WAM